Historically bookkeepers were the number punching processors of the business and the accountant prepared the financial reports. With the introduction of goods and services tax (G.S.T.) the accountant’s role expanded to the preparation and processing of G.S.T. related information, such as the preparation and lodgement of the Business Activity Statement (BAS). This legislation was introduced in 2000 under the G.S.T. Tax legislation by the Australian Taxation Office (ATO).
Today’s bookkeeper is very different from those of the past. Bookkeepers, also known as Accounting Technicians, carry out the majority of the financial processes and reporting for the business including the G.S.T. related information.
One of the important roles of a bookkeeper is to impart information such as cash flow reports and profit reports on a regular basis and providing to the client an analysis of those reports. This will then assist the business owners in determining not only the status quo but also information in regards to future expansion and what procedures need to be undertaken for any investment opportunities or capital growth expenditure.
A bookkeeper should be enquiring of the business what sort of information they are looking for and providing specific reports relating to those requirements. For example a business that relies on cash will need to have cash reports more regularly than one that may have a large cash surplus.
These processes include:
* Data entry of creditors and debtors invoices and ensuring they are reconciled.
* Processing of payrolls and accounting for and processing Superannuation Guarantee payments, including any salary sacrifice arrangements.
* Preparation of accounts for year-end to enable the accountant to prepare tax returns, including the reconciliation and preparation of (Pay As You Go Summaries).
* Preparation of budgets, including cash flow and monitoring on a regular basis.
* Preparation and lodgement of BAS statutory requirements.
Providing your client with the relevant financial information will ensure they can make informed business decisions in a timely manner. Providing a Profit report six months after the event is irrelevant and will not assist the business.
Providing your client with the statutory requirements in regard to G.S.T. and ensure that these are carried out within the designated timeframes will mean that the business is not subject to any penalties.
Changes to the legislation
From 1 July 2011 not only do BAS Agents have to be registered they must also hold the relevant professional indemnity insurance.
These changes relating to bookkeepers ensures that the bookkeeper you contract to undertake your financial processing and reporting holds the relevant qualifications and certifications. It also means that they are up to date with the latest changes in legislation. The changes to the legislation make bookkeepers accountable for their actions and bring them into a more professional field.
Deciding on a bookkeeper
While there are many bookkeepers available in the current market you should ensure that the one you choose complies with the following:
They hold the relevant certifications and qualifications.
* Are they a registered BAS Agent?
* Do they hold a certificate IV in finance or higher, such as an Associate Diploma of Accounting.
* Do they hold professional indemnity insurance?
* They are able to provide you with the information that you require in a timely manner. For example if you have a bookkeeper who works alone and has one hundred clients can you be sure that they will provide your business with sufficient attention.
* They are available when you need them. Not all bookkeepers work outside of 9-5 standard office hours, so you may want a bookkeeper who is available on weekends or after hours.
From the perspective of a bookkeeper I find it beneficial to my clients to be able to provide a wider scope of work such as financial analysis. And knowing they have availability outside normal office hour’s means that my clients need not interrupt their working day.
A client agreement is a must as this will provide peace of mind for the client and the bookkeeper, minimising the risk of disputes. Most professional associations can provide a general client agreement that can be used as the basis for your own.
So when looking for a bookkeeper, rather than choosing the first one in the book or the cheapest, look at all the aspects of the company. Bells and whistles don’t always show professionalism or capability, you need to look a bit deeper.
About the author Susanne Bruen has over 20 years experience in the field of Accounting. She holds all the qualifications and registrations that are required by legislation.
Registered BAS Agent
Associate Diploma of Business Accounting.
Public Pracitce Member of the Association of Accounting Technicians. (AAT)
http://www.aprbookkeeping.com/
Article Source: http://EzineArticles.com/?expert=Susanne_Bruen